Return On Net Assets - RONA

  

Categories: Investing, Metrics

The formula: "Return" here is usually net income; it goes into the numerator. Then in the denominator? Rhymes with shmet shmassets.

So what are "net" assets? Like...we know what assets are. Assets minus liabilities? Remember ALE? That. So shareholder's equity is the denominator, a.k.a. "net assets" here, and we're good.

RONA. Sound familiar? Yeah, it's the name of your old secretary. Good memory.

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